Cayman Islands: LA Bills To Further Enhance Cayman's AML/CFT Regime

Last Updated: 15 July 2019

Government is presenting 11 bills, to further strengthen Cayman's anti-money laundering and counter financing of terrorism (AML/CFT) regime, to the Legislative Assembly on Wednesday, 24 July. There will also be two separate bills to handle administrative matters for the Auditors Oversight Authority (AOA) and the Cayman Islands Monetary Authority (CIMA).

During the fifth meeting of the 2018-2019 session, these AML/CFT-related bills will be debated in the LA:

  • Banks and Trust Companies (Amendment) Bill, 2019;
  • Trusts (Amendment) (No. 2) Bill, 2019;
  • The Companies (Amendment) Bill, 2019;
  • The Limited Liability Companies (Amendment) Bill, 2019;
  • The Limited Liability Partnership (Amendment) Bill, 2019;
  • Mutual Funds (Amendment) Bill, 2019;
  • Insurance (Amendment) Bill, 2019;
  • Building Societies (Amendment) Bill, 2019;
  • Cooperative Societies (Amendment) Bill, 2019;
  • Money Services (Amendment) Bill, 2019;
  • Trade and Business Licensing (Amendment) Bill, 2019

Financial Services Minister Tara Rivers noted that ten of the bills are being presented by the Ministry of Financial Services.

'These bills will strengthen our already extensive AML/CFT regime. The Government is committed to addressing the recommendations outlined in the CFATF fourth round mutual evaluation report to further cement our standing as a responsible and responsive jurisdiction in the global fight against money laundering and terrorist financing', Minister Rivers said.

The Banks and Trust Companies (Amendment) Bill, 2019 is intended to ensure that appropriate transparency measures, such as disclosure requirements, are in place for trusts. For the purpose of Basel II, Pillar 3 Market Disclosures, the bill also would empower CIMA to require a licensee holding a licence, in order to establish a banking business or a Cayman banking group, to make public disclosures.

The Trusts (Amendment) (No. 2) Bill, 2019 seeks to insert provisions into the Trusts Law (2018 Revision) that: require trustees and the Registrar of Trusts to share information on registered trusts with other competent authorities; provide sanctions for failure to provide competent authorities with required information; and empower Cabinet to make regulations.

The Companies (Amendment) Bill, 2019 is intended to require a company's basic information, including a list of directors, to be maintained and publicly available. The bill also puts forward stiffer penalties for failure to comply with beneficial ownership obligations under the law.

The Limited Liability Companies (Amendment) Bill, 2019 would ensure that all basic information, including a list of directors, for limited liability companies (LLCs) is publicly available. The bill also would impose sanctions to companies for failure to maintain up-to-date information.

The Limited Liability Partnership (Amendment) Bill, 2019 is similar to the companies and LLC bills as it would require all basic information on a limited liability partnership (LLP) to be available at the LLP's registered office. The bill also puts forward stiffer sanctions for failure to maintain up-to-date beneficial ownership information.

The Mutual Funds (Amendment) Bill, 2019 and the Insurance (Amendment) Bill, 2019 would sanction licensees, who also provide company management services, where they fail to maintain current beneficial ownership information for their clients. The mutual funds bill also calls for auditors and other professionals who become aware of this failure to notify the relevant authority.

The Building Societies (Amendment) Bill, 2019 and the Cooperative Societies (Amendment) Bill, 2019 would prevent persons from holding (or being the beneficial owner of) a significant controlling interest, or holding a management function, in a financial institution if they are suspected of criminal activity.

The Money Services (Amendment) Bill, 2019 would require money service businesses to monitor their agents' compliance with their AML/CFT programmes and ensure these businesses meet AML/CFT requirements.

Cayman's AML/CFT regime would also be affected by the Trade and Business Licensing (Amendment) Bill, 2019, being put forward by the Ministry of Commerce, to amend the Trade and Business Licensing (TBL) Law to require the TBL Board to consider an applicant's compliance with AML/CFT obligations before licences are granted, renewed or revoked.

The bills are intended to help address the Caribbean Financial Action Task Force (CFATF)'s March 2019 report on Cayman's AML/CFT regime. The report outlines certain recommended actions to be taken by the Cayman Islands to strengthen the AML/CFT regime. The jurisdiction is under a one-year "Observation Period" by the FATF, ending February 2020, in which it is expected to correct strategic AML/CFT deficiencies. The FATF will review the progress made by the Cayman Islands and, at its June 2020 Plenary, determine if the recommended actions have been taken.

If the degree and quality of progress made by the Cayman Islands do not satisfy the recommended actions, the FATF will issue a public statement regarding the jurisdiction's AML/CFT deficiencies, develop an action plan, and monitor progress against the action plan.

In June, Cayman's AML/CFT regime was strengthened by the passage of the Proceeds of Crime (Amendment) Law, 2019; Securities Investment Business (Amendment) Law, 2019; and the Directors Registration and Licensing (Amendment) Law, 2019.

Outside of the AML/CFT-related bills, this month's LA meeting also will see debate over the Auditors Oversight (Amendment) Bill, 2019 and Monetary Authority (Amendment) (No.2) Bill, 2019.

The Auditors Oversight (Amendment) Bill, 2019 seeks to amend the financial year of the Auditors Oversight Authority Law (2017 Revision) to align with the financial year in the Public Management Finance Law (2018 Revision) and remove inconsistencies.

The Monetary Authority (Amendment) (No.2) Bill, 2019 also seeks to amend the financial year in the Monetary Authority Law (2018 Revision) to align with the financial year in the Public Management Finance Law (2018 Revision) and eliminate inconsistencies. In addition, the bill proposes to authorise CIMA as the facilitator of business continuity and disaster recovery, following a natural disaster, with the power to exempt any affected person or class of persons from any relevant regulatory provisions for a period and under such conditions as CIMA deems suitable.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
 
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
 
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions